The Research On The Effect Of Factor Market Distortion On Innovation Efficiency Of High-tech Industry

Since the dual-track pricing system was abolished,China’s product market has been relatively complete,but in the period of economic transition there is a special phenomenon of factor market distortion.This article takes factor market distortion as the entry point to study its impact on the innovation efficiency of high-tech industry.It not only enriches and develops western distortion theory,but also provides theoretical support for the improvement of high-tech industry innovation efficiency.This article first sorts out relevant literature on factor market distortions and innovation efficiency,and discusses labor market distortions and the impact of capital market distortions on innovation efficiency.Three hypotheses are proposed: labor market distortions and capital market distortions inhibit innovation efficiency of high-tech industries;The expansion of the enterprise scale will help improve the suppression of capital market distortions on innovation efficiency;the expansion of industry openness will help improve the suppression of labor market distortions on innovation efficiency.Secondly,using the C-D production function to measure the degree of distortion of the labor market and the distortion of the capital market,and use stochastic frontier analysis(SFA)to measure Innovation efficiency of the high-tech industries of 28 provinces(cities,autonomous regions)in China from 2005 to 2015.On this basis,using stochastic frontier analysis(SFA)to verify the labor market distortions and capital market distortions on the inhibition of high-tech industry innovation efficiency and the role played by different corporate characteristics variables.The results show that factor prices have a certain degree of negative distortion,and the overall level of high-tech industry innovation efficiency in various provinces(cities,autonomous regions)in China is low and the difference is large.The research conclusions support the three major hypotheses.Finally,this article carries out a counter-factual test.The results show that once the distortion of the capital market is eliminated,the innovation efficiency of the high-tech industry can be increased by40.994%,eliminating the distortion of the labor market and increasing the innovationefficiency of the high-tech industry by 8.813%.The research conclusions provide a new perspective for improving the innovation efficiency of high-tech industries.Based on this,this paper proposes policy recommendations from two perspectives.On the one hand,we can improve the innovation efficiency of high-tech industries by eliminating unfavorable external environmental factors.On the other hand,high-tech industries can reduce the adverse effects of factor market distortions on innovation efficiency in light of own situation in the reality of the factor market distortion.Specifically,China must speed up the reform of factor markets,deepen the reform of the fiscal and taxation system,and encourage the high-tech industry to increase modestly the scale of enterprises and the degree of industry outward direction.